Constellium SE

Constellium SE (NYSE: CSTM) creates aluminum products and solutions for the packaging, aerospace, and automotive industries. Its primary markets include France, the United States, Germany, the Czech Republic, and other allied countries.

Key Highlights

• The company reported a 15.84% rise in revenues to EUR 2.86 billion during H1FY21 (ended June 30, 2021) compared to EUR 2.47 billion during H1FY20.
• CSTM reported a net income of EUR 156 million in H1FY21 in contrast to a net loss of EUR 63 million in H1FY20.
• As of June 30, 2021, the company had cash and cash equivalents of EUR 290 million and total debt of EUR 2.26 billion.
• CSTM's EBITDA margin for FY20 was 9.3%, significantly lower than the industry median of 36.2%.
• On June 29, 2021, CSTM stated that it would continue to work with Audi to provide innovative aluminum solutions for the Audi e-tron GT, building on a long-standing collaboration.
• Stock is currently trading above its crucial short-term (50-day) and long-term (200-day) SMA support levels.
• Stock is currently leaning towards the higher band of the 52-week range of USD 7.21 to USD 20.34.
• CSTM's stock price has risen 147.21% in the past twelve months, compared to 88.52% for the S&P 500 index.

Technical Price Chart (as of August 27, 2021). Analysis by Kalkine

Conclusion: Considering the significant uptick in the stock price, we feel the current share price adequately reflects the decent business fundamentals and have chosen to remain on the sidelines. Hence, we recommend an "Expensive" rating on the stock at the closing price of USD 19.90, up 2.05% as of August 27, 2021.

*The reference data in this report has been partly sourced from REFINITIV.

Kaiser Aluminum Corporation

Kaiser Aluminum Corporation (NASDAQ: KALU) is a manufacturer and distributor of semi-fabricated specialized aluminum mill products for aerospace, automotive, general engineering, aluminum beverage and food packaging, and other industrial industries. KALU generates the majority of its revenues in the United States, while the rest comes from Canada.

Key Highlights

• The company reported a sharp uptick of 65.11% in net sales to USD 1.07 billion during H1FY21 (ended June 30, 2021) compared to USD 645.0 million during H1FY20.
• As of June 30, 2021, the company had cash and cash equivalents of USD 283.1 million with total debt of USD 1.04 billion, making a substantially leveraged balance sheet.
• KALU's EBITDA margin for Q2FY21 was 5.4%, significantly lower than the industry median of 40.1%.
• On July 13, 2021, KALU declared a quarterly cash dividend of USD 0.72 per share, which was paid on August 13, 2021, to shareholders of record on July 23, 2021.
• On May 11, 2021, KALU priced a private placement of USD 550.0 million aggregate principal amount of 4.50% senior notes due 2031 at par value.
• Stock is currently trading above its crucial short-term as well as long-term 50-day and 200-day SMA support levels, a bearish indicator.
• Stock is currently leaning towards the higher end of the 52-week range of USD 50.49 to USD 141.07.
• KALU's stock price surged 91.54% in the past twelve months, compared to 42.79% for the NASDAQ Composite index.

Technical Price Chart (as of August 27, 2021). Analysis by Kalkine

Conclusion: Considering the significant uptick in the stock price, we feel the current share price adequately reflects the robust business fundamentals and have chosen to remain on the sidelines. Hence, we recommend an "Expensive" rating on the stock at the closing price of USD 125.44, up 5.15% as of August 27, 2021.

*The reference data in this report has been partly sourced from REFINITIV.